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3. Bond Problem: X Co. issued 7% bonds with a face value of $200,000. At time of issue, the market interest rate for similar bonds

3. Bond Problem: X Co. issued 7% bonds with a face value of $200,000. At time of issue, the market interest rate for similar bonds was 8%. The bonds had a five-year life and paid interest annually (to keep the problem straightforward). At what price were the bonds issued. Record the entry for issuance. In class (or at home if you like), prepare a bond interest amortization schedule, using Excel.

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